Volvo officials are expressing concern following the release of financial statements showing second quarter profits dropped 28 percent. The company blamed the losses on a weakening demand for trucks in the North American market.

Citing "unsatisfactory" operating income, Volvo CEO Leif Johansson pointed to weakness in the North American truck market, but acknowledged that the company is seeing weakness in other areas as well. "As in the most recent quarters, it is primarily the weak truck market in North America that restricts earnings growth for the group," Johansson said in a released statement. He also warned of declining truck demand in Europe.

Volvo reported a net income of $127 million for the quarter, compared to $176 million a year ago. Net sales increased 52 percent for the second quarter to $4.4 billion from $2.9 billion in 2000. Sales of Volvo Global Trucks were aided with the combined Mack, Renault and Volvo operations.

Through the first six months of 2001, Volvo Global Trucks delivered more than 82,000 vehicles worldwide, a 14 percent drop from the same period a year ago. North American deliveries were down 39 percent.